FHA Mortgage Insurance for Kentucky Mortgage Loans

Kentucky Mortgage Requirements for Fico and Credit Scores for FHA, VA, USDA, and Conventional loan programs

FHA Mortgage Insurance for Kentucky Mortgage Loans

UFMIP FHA Premiums for Kentucky Mortgage Loan Below

 

 

Effective for case numbers assigned on and after April 18, 2011, the following premiums apply: LTV

 

 

Up-Front and Annual Mortgage Insurance Premium

 

Mortgage Term Greater Than 15 Years

 

 

Purchase and Refinance

 

 

Streamline Refinance

 

 

> 95%

 

1.00% / 1.15%

1.00% / 1.15%

 

< = 95%

 

1.00% / 1.10%

1.00% / 1.10%

 

UFMIP for Refinance Transactions for a FHA Mortgage Loan

The amount of unearned premium refunded, if applicable, depends on when the mortgage was closed.

The following requirements are applicable to Regular and Streamline Refinances (except those Streamline Refinances of mortgages closed before July 1, 1991):

FHA Mortgages closed after July 1, 1991, but before January 1, 2001: The seven-year unearned premium refund schedule shown in Mortgagee Letter 94-1 remains in effect.

Mortgages closed on or after January 1, 2001, but endorsed before December 8, 2004, that are subsequently refinanced: The five-year refund schedule shown in Mortgagee Letter 00-46 applies.

Mortgages endorsed on or after December 8, 2004, that are subsequently refinanced: The mortgage will not be eligible for a refund of the UFMIP except when the borrower refinances to another mortgage to be insured by FHA. The three-year refund schedule shown in Mortgagee Letter 05-03 applies.

Streamline Refinances of Mortgages:

 

Closed before July 1, 1991: These loans remain exempt from the annual premium and are charged an upfront premium of 1.50%.

Case numbers assigned between July 14, 2008 and September 30, 2008: (ML 2008-16)

UFMIP: 1.00%

Annual MIP: .50%

The MIP for the subsequent Streamline refinance is based on the credit score and loan-to-value for the existing mortgage being refinanced.

If the streamline refinance is “credit qualifying” with or without an appraisal, the MIP is based on the new credit score and the loan-to-value from the existing mortgage being refinanced.

Cancellation of MIP

The annual MIP may be canceled by HUD once the unpaid principal balance reaches 78% of the lower of the initial sales price or the appraised value based on the initial amortization schedule.

FHA’s calculation of the 78% threshold is based on the:

Loan amount, excluding the UFMIP.

Initial sales price or original appraised value, whichever is less.

MIP cancellation of a Streamline Refinance without an appraisal is determined based on the “original appraised value” provided by HUD.

Note

: Regardless of the computed loan-to-value ratio, all but 15-year term mortgage will have annual premiums for the greater of five years or until the amortized loan-to-value reaches 78%. Refer to Mortgagee Letter 00-46.

MIP Requirements

Refinance mortgage insurance premium (MIP) requirements are the same as for purchase transactions.